Economic analysis of sustainable agriculture in the tropical rain forest of Brazil : agricultural techniques in Rondônia

This paper examines the behavior of small scale farmers in Rondônia, Brazil and the agricultural methods they choose. In the Amazonia state of Rondonia the major source of deforestation is the use of slash and burn agriculture by small scale farmers. It is well documented that the adoption of a more sustainable method of agriculture can reduce deforestation drastically if utilized by a majority of the farmers (Myers 1994, Anderson 1993, Anderson 1990). Sustainable agriculture was introduced to the area about 10 years ago, but few farmers have adopted it. The determination of the factors which may increase the rate of adoption could help to identify which policies best address this issue. This study examines the adoption of sustainable agriculture by farmers in Ouro Preto do Oeste, Rondônia. The theoretical framework is based on a family utility model. According to this model, the family chooses between sustainable and slash and burn agriculture based on which method of farming gives them the greatest utility. Empirical data and a discrete choice Heckman model are used to estimate the probability of adopting sustainable agriculture and the intensity of adoption (once the adoption decision is made). The analysis concludes that the adoption of sustainable agriculture is influenced greatly by farmer organizations and by the knowledge that sustainable agriculture is an alternative to slash and burn agriculture. Imperfect information appears to be the main deterrent to the adoption of sustainable agriculture. Local farm organizations provide both information about and experience with sustainable agriculture in a short period of time and therefore influence the adoption rate. In addition, farmer characteristics such as education level are found to play a role in the adoption decision. These results suggest that policies, which provide information about sustainable agriculture and support local farm organizations, can greatly increase the diffusion of sustainable agriculture in Ouro Preto do Oeste, Rondônia and similar settlements in the Amazon.